Retail sheds 225,000 jobs in five years with Budget heaping on further pain, warns BRC

Based on the most recent stats from the Office for National Statistics for September 2024, the BRC said that retail had lost 40,000 jobs in the last 12 months and nearly a quarter of a million jobs since 2019.

BRC chief executive Helen Dickinson warned that the national insurance proposals put forward at the recent Budget would only heap further pain on the retail sector from next year. 

She said: “Despite a further fall in the number of retail jobs, the industry remains the largest private sector employer providing approximately 2.9 million jobs in the UK, with another 2.7 million in the supply chain.

“The current fall is partially explained by the ongoing transformation in the industry, from increased investment in automation and higher productivity to a shift to outsourcing of warehousing and logistics that are not all captured by the ONS retail figures.

“Meanwhile, costs of hiring have risen significantly in recent years. Pay growth in the industry was well above the national average at 8.5% in 2024, and up over 25% since 2021.

“The October Budget increases the national living wage by a further 6.7%, adding over £2.7bn to retailer wage bills from April 2025, while changes to rate and threshold for employer national insurance contributions will cost the industry over £2.3bn.

“This could hasten the reduction in retail jobs and particularly the recruitment of part-time roles, which have been falling in recent years.

“Retailers are responding to the changing business landscape, with most saying they will further increase investment in automation and improve worker productivity. What’s inevitable is the Budget will also put pressure on jobs and hours in the coming year, potentially affecting communities all over the UK that rely on retail as a vital provider of entry-level, local jobs.”